On Friday, the XAU/USD exchange rate re-tested the upper boundary of the rising wedge pattern at 1,700.00. During today’s morning, the rate was testing the support formed by the 55-hour SMA and the monthly R1 at 1,668.23.
From a theoretical point of view, it is likely that gold could continue to appreciate against the US Dollar within the following trading session.
On the other hand, yellow metal could consolidate against the Greenback, trying to surpass the given support. Also, it is unlikely that bears could prevail in the market, and the rate could decline below the 200-hour SMA near 1,640.00.
